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Intellectual Property and Contract Governance

We help clients manage trust-based counterparty relationships (typically outsourced services, product supply or intellectual property licensing arrangements) using the "audit right” in their contracts. We identify and facilitate the recovery of revenues owed or non-compliant charging, whilst maintaining our clients' relationships with business partners, customers and suppliers.

These situations can be particularly complex and business-critical in the world of joint ventures. We work closely with KPMG's specialist JV team to help clients in areas of contention between partners, such as cost recovery. Read more about our joint ventures services

We help clients who license-in Intellectual Property (in particular software), to manage the risks arising from their obligations under license agreements.

What's on your Mind?

One or more of the following issues may be relevant:

Your business has outsourced services / business processes to counterparties ("vendors” or "business partners”).

The financial arrangements are complex and vendor charges are significant but lack transparency.

Your organisation procures large volumes of goods from individual suppliers under supply agreements with complex financial terms (such as most favoured nation and rebate clauses).

Your business licenses its IP to counterparties ("licensees”) in return for license fees / royalties. The client relies on the honesty and capability of licensees to report royalties and fees due accurately and completely.

Your organisation is exposed to the risk of significant unrecognised financial liabilities due to use of unlicensed software, arising from difficulties in managing intangible assets.

You are paying significantly more for software licenses and maintenance than is necessary because of difficulties in measuring actual requirements.

Bringing you Peace of Mind

Review the whole population of your organisation's contractual relationships and identify potential financial risks.Prioritise contracts for further action to mitigate financial risks.

Provide visibility of the performance of your organisation's suppliers, business partners and licensees in respect of their compliance with contractual financial obligations by exercising audit rights.

Assist your organisation in more effectively managing software licenses to reduce the risk of non-compliance with the terms of license agreements and avoid wasted expense.

What's in it for you?

Cash recoveries typically between four and 10 times KPMG fees.

Help ensure future charging under supply agreements is at the correct level.

Help ensure future royalty income is reported accurately and completely.

Provides a robust Governance Framework where counterparty relationships are a significant part of your organisation's business model.

Why KPMG?

KPMG is a global market leader in checking compliance with the financial terms of complex contracts.

At any one time we have more than 1,200 reviews of counterparties in progress around the world.

In the past six years KPMG helped clients recover over Euro 750m worldwide, relating to overcharging for supplies of goods and services / under-declaration of royalties and license fees.

Globally KPMG has over 300 professionals specialising in this area.

Our teams are highly scaleable and we are able to deploy local specialist staff in over 40 countries worldwide.

Case Study

Major Oil and Gas Company

Our client has more than 20,000 suppliers with whom it spends over US$70 Billion annually.

It requires a strong governance framework to manage this level of spend.

KPMG was engaged to develop and manage a programme of reviews of major suppliers under audit rights within its agreementsKPMG undertakes reviews at approximately 100 major suppliers annually and in the first 18 months of the engagement identified over $30m in recoverable overcharging, representing a multiple of eight times our fees.

We have provided opportunities to clarify the intent of ambiguities in contractual terms and identified and provided recommendations to remediate control and process deficiencies within the management of counterparty contracts.

KPMG has performed reviews using local specialist staff in 15 countries on five continents.

KPMG International Cooperative ("KPMG International") is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.